Gold – Road Map
Gold made an expected move up. Let’s evaluate technical health of the move and options on the table with their probabilities.
The most recent long term prospective: Gold – Long Term Outlook – August 21
ELLIOTT WAVES
Short Term
Gold appears to be forming a post-triangle thrust—a classic fifth-wave release after a wave-4 triangle. As Prechter wrote: “In the stock market, when a triangle occurs in the fourth wave position, wave five is sometimes swift and travels approximately the distance of the widest part of the triangle. Elliott used the word “thrust” in referring to this swift, short motive wave following a triangle. The thrust is usually an impulse but can be an ending diagonal.”
Here’s the roadmap for the thrust. Wave iv may be very sharp, followed by an even sharper wave v with an immediate reversal—so the entire sequence can compress in time.
The candles look dangerous so far; the next 1–2 sessions this week will be telling.
Happy Trading!
